The U.S. Department of Energy (DOE) announced on October 31 a new funding initiative of $44.8 million from the Bipartisan Infrastructure Law (BIL) to support eight projects aimed at reducing the costs of recycling electric vehicle (EV) batteries. This funding is part of a broader strategy to enhance the domestic supply chain for lithium-ion batteries, which is expected to grow significantly as demand for EVs increases. The DOE highlighted that over 4 million EVs have been sold in the U.S. under the Biden administration, with projections indicating that the lithium battery market could expand five to ten times by the end of the decade.

The selected projects will focus on advancing research and development in battery recycling and second-life applications, building on previous funding of $92 million for similar initiatives. This funding is part of a total commitment of $200 million for EV battery recycling efforts, which is included in the larger $7 billion allocation from the BIL to support battery supply chains.

As U.S. scrap battery volumes are projected to rise significantly in the coming years, with estimates suggesting an increase from 87,000 tons in 2024 to a 488% growth by 2034, the DOE aims to bolster domestic recycling capacity. Currently, the U.S. can reclaim only 35,500 short tons of battery materials annually, but new facilities are expected to increase this capacity substantially.

Despite the upcoming presidential election, industry experts believe that efforts to secure supply chains and build manufacturing capabilities will continue regardless of political outcomes. The announcement comes as part of ongoing efforts to reduce reliance on foreign sources for critical materials and enhance energy security in the U.S.